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Zappos business model There are 2 ways to see Zappos Business Model How Zappos see it How we see it • # of Suppliers • Passion • Delivery • Purpose • Customer service • Happiness ` • Culture • Emotional connection • Core Values • Return policy • Word of mouth • 75% Repeat Customers The only tangible asset of an E-Commerce People will never forget how you make them feel – Customer Service Information Technology Management, Zappos Case, Fenway Cohort, Team 9

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Zappos- Situation  Zappos has a consistent history of leveraging the inherent strengths in information technology to its advantage and create customer value at the same time.  Implementation of SAP in 2010 created co-value for Zappos as well as the customer • Faster closing of financial statements , because of faster matching of invoices , leading to faster response rate from Zappos. • Effective management of back end operations , leading to effective service ` level in the front-end. • Effective tracking of customer orders and returns, leading to effective account reconciliation.  Consistently used non traditional platforms to communicate and connect with its audience , including , viral videos, blogs and micro-blogs (Twitter) Information Technology Management, Zappos Case, Fenway Cohort, Team 9

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Recommendations• Zappos has been very successful using Twitter to leverage their sales, they shouldcontinue this but keep in mind the following things: •Leadership. The leaderboard that Zappos uses to measure every employee’s followers has always been led by its CEO with over 2.2M. •Transparent Brand. Zappos has never filtered the Twitter posts they show on their webpage. Both good and bad reviews are accepted and every bad review is seen as an opportunity to improve •Celebrate your fans. Zappos created special tracking pages for their favorite outside ` fans. This is a way the company says thanks to its best Twitter fans.•After their success in Twitter, Zappos should try to replicate this formula in other sitessuch as Pinterest. •Pinterest has recently become the third biggest social media site. •The site’s structure would be perfect for marketing Zappo’s products Information Technology Management, Zappos Case, Fenway Cohort, Team 9